Does a contractor when he invoices and has mileage expenses; is the mileage added with GST or without?
By John R Mott | July 28, 2013
Rita asked:
Does a contractor (who provides a service for us), when he invoices and has mileage expenses; is the mileage added with GST or without?
John R Mott answered:
Yes, expense allowances received by an HST registrant, including mileage based automobile allowances, are subject to GST/HST in the circumstances you describe.
In the case of a straight reimbursement of an out-of-pocket expense (that may or may not already include HST), there is no requirement to add HST.